A new report from the African Association of Energy Journalists and Publishers (AJERAP) reveals that Sierra Leone is currently not seen as an attractive destination for energy investors, lagging behind several other African nations in the rapidly evolving energy sector.

The report, African Energy Outlook: Second Half of 2024, highlights Nigeria, Gambia, Namibia, and Senegal as the most favorable countries for energy investments in the latter part of this year.

According to the report, these nations have emerged as strategic hubs for investors, particularly in the oil and gas sectors, due to their abundant resources and the potential for substantial returns.

Nigeria, for instance, stands out with its enormous reserves of over 37 billion barrels of crude oil and more than 206 trillion cubic feet of proven gas reserves. The country’s large population and the opening of 31 major oil blocks for bidding further enhance its appeal as a prime investment destination.

Gambia has also drawn attention as an emerging oil and gas province, benefiting from new technologies like 3D seismic data gathering that are unlocking its potential.

Namibia, with significant offshore discoveries and vast renewable resources, is becoming a key player for green hydrogen investments, while Senegal’s promising Sangomar deep-water project is expected to produce 100,000 barrels of oil per day, solidifying its position as a major energy hub.

In stark contrast, Sierra Leone has not yet secured a position among these top investment destinations.

The country’s energy sector remains underdeveloped, with limited infrastructure and investment opportunities. Despite some recent progress, such as the electrification of Borup through a clean energy project supported by Sustainable Energy for All’s (SEforALL) Universal Energy Facility, and a USD $480 million investment from the Millennium Challenge Corporation (MCC) for Sierra Leone’s Energy Compact, the country still faces significant challenges in attracting large-scale energy investments.

 

The report underscores the need for Sierra Leone to enhance its energy sector to become competitive on the African continent. While neighboring countries are capitalizing on their resources and strategic positioning, Sierra Leone must continue to develop its infrastructure and create a more favorable environment for investors if it hopes to catch up and secure a place among Africa’s top energy investment destinations.